Mnuchin defends banking record

Friday, January 20, 2017 - 01:45

President-elect Donald Trump's choice for Treasury secretary, Steven Mnuchin, defended his banking record in the aftermath of the financial crisis in his confirmation hearing on Capitol Hill. Bobbi Rebell reports.

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President-elect Donald Trump's nominee for Treasury Secretary Steven Mnuchin defended his banking record in testimony before the Senate Finance Committee.
(SOUNDBITE) STEVEN MNUCHIN, NOMINEE FOR U.S. TREASURY SECRETARY, (ENGLISH) ,SAYING:
"Since I was first nominated to serve as Treasury secretary, I have been maligned as taking advantage of other's hardship in order to earn a buck. Nothing could be further than from the truth."
During the financial crisis, Mnuchin struck a lucrative deal with the FDIC to rescue IndyMac Bank, one of the largest bank failures in U.S. history.
He gave it a new name - OneWest - and worked through its portfolio of defaulted home loans, resulting in 36,000 foreclosures.
(SOUNDBITE) STEVEN MNUCHIN, NOMINEE FOR U.S. TREASURY SECRETARY, (ENGLISH) ,SAYING:
"In the press, it has been said that I ran a 'foreclosure machine'. This is not an accurate description of my role at OneWest Bank. On the contrary, I was committed to loan modifications intended to stop foreclosures. I ran a loan modification machine."
Mnuchin also faced questioning on how he will manage Trump's tax and spending plans, trade, debt ceiling, Fannie Mae and Freddie Mac. Stocks of the companies tumbled on Munchin's comments.
Peter Cardillo, chief market economist at First Standard Financial.
(SOUNDBITE) PETER PETER CARDILLO, CHIEF FINANCIAL ECONOMIST, FIRST STANDARD FINANCIAL, (ENGLISH) SAYING:
"Market is convinced that he is able. Is the market convinced that he wasn't part of the 2008 problem? Not too sure about that."
Mnuchin, a former Goldman Sachs executive, hedge fund manager, and Hollywood film financier, would be the first Wall Street veteran to head the Treasury Department in eight years.

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